Q. What is a loan modification ?
There are various types of Loan Modifications. Your mortgage can be modified using a state or government program.
Or through a traditional Investor driven modification. All modifications are designed to either:
- Lower your current interest rate to an affordable amount
- Reduce the Principal Balance closer to current market value
- Extend the term of the loan up to a 40 year term.
Q. What is a Forbearance agreement?
This is an instrument the Lender will use to collect past due payments. Typically, if your payment were $1000.00 per month and you owed 3 months, they would take the $3000.00 you owe and spread it out over time. So, if you paid an extra $200.00 every month, in 15 months you would be current. This is a common collection practice. In forbearance the "pause button" is hit in the foreclosure process. Yet the lender has the right to pick up where they left off if you do not pay on time.
Q. What is a Short sale?.
A short sale is a term used to sell a property “short” of what is owed on the mortgage. If you had a property that had a “market value” of: $150,000 and you had a Mortgage on the property of: $180,000 your Lender could agree to sell it “short” of the $180,000. This can be a complex and timely process in order to find a buyer and get the Lender to agree to sell the property short.
Q. What if I do not live in the property?
Many times Investment properties and 2nd homes can still be modifiedshort sale is a term used to sell
Q. What if I have been denied in the past?
Do not worry. There may be solutions your lender is not disclosing to you. Our offices uses the same calculations and formulas that the banks use to calculate affordability for repayment. We make sure your case is treated and processed correctly within your Lender's office. To ensure the best modification for you.
The MPAT Negotiators are skilled in all theses areas and we have constant success
with both Loan Modifications and Short Sales.